Europe’s Morning MoneyBeat: Small Gains Likely Ahead of PMIs

European stock markets are expected to edge higher Monday, as Friday’s disappointing U.S. employment report tilts the balance away from September for the start of the reduction of the Federal Reserve’s $85 billion-a-month bond-buying program.

That said, gains are likely to be tepid with uncertainty still large. U.K.-based brokerage Alpari expects the FTSE 100 to open just four points higher, the DAX up five points and the CAC-40 only four points to the good.

Economic data due for release Monday include the June retail sales report for the euro zone, which is expected to show a fall from a month earlier, while services purchasing managers’ indexes for the region, as well as the U.K. and the U.S., are expected to paint a more positive picture. Overnight, China’s services PMI release from HSBC remained comfortably in growth territory, even if considerably below Saturday’s official release.

Ben Bernanke: Man of Mystery: After seven years campaigning for greater openness and clarity, the Federal Reserve chairman has turned coy about how quickly the Fed will reduce its $85 billion in monthly market stimulus.

Can You Be Bound for Glory?: The bull market is starting to look like a stampede. After taking more than 13 years to climb to 1600 from 1500, the S&P 500 index of big U.S. stocks didn’t even take 13 weeks to add the next 100 points.

From The Wall Street Journal:

China Bans Fonterra’s Milk-Powder Imports: China has banned imports of milk powder from Fonterra, dealing a blow to New Zealand’s biggest dairy exporter at a time when it’s also being probed by Beijing over pricing.

Apple Veto Could End Big Patent Battles: The Obama administration’s overturning a ruling against Apple promises to upend intellectual-property fights in the smartphone market and change some tech giants’ strategies.

U.S. and Canada Vie for Big Gas Projects: A drilling revolution in the U.S. and Canada has unlocked a glut of natural-gas reserves across the continent. That has sent prices tumbling, but has also sent energy companies scrambling for a way to profit by sending the cheap gas to Asia, where demand and prices are high.

Australian Election Set for Sept. 7: Australia’s Prime Minister Kevin Rudd called an election for Sept. 7, seeking to capitalize on a surge in support for the Labor Party since taking leadership from Julia Gillard in June.

Investors Are Warming to European Stocks: Faint glimmers of economic life in long-moribund Europe are luring investors who have been keen on European companies’ promise but spooked by the region’s debt crisis and its poor outlook for growth.

Regrouped al Qaeda Poses Global Threat: Widespread U.S. embassy closures and travel alerts prompted by al Qaeda’s affiliate in Yemen show how the group has proved stubbornly resilient despite more than two years of American strikes against its leaders.

Iran Seen Trying New Path to Bomb: Iran could begin producing weapons-grade plutonium by next summer, U.S. and European officials believe, using a different nuclear technology that would be easier for foreign countries to attack.